The weekend brought profit booking back in Copper that was rising on
the back of strike news in Chile. The red metal pared gains after the
strike was over and the reality yet again came to haunt the prices. LME
Copper three month prices settled at $ 7544 per tonne, down $ 31 per
tonne. Other metals like Nickel and Aluminium also declined by $ 150 and
$ 24 per tonne respectively. The indicators from US continued to pressurize the metals. Soon after jobless claims report hit the markets it was clear that Federal Reserve was one step ahead in curbing the $ 85 billion quantitative easing programme earlier. US jobless claims declined by 42000 to 346000 during the week ending 6 April ahead of expected 360000.
However, IMF report that the World economy may grow by 3.4 percent in 2013 from earlier expectation of 3.5 percent can be a deterrent for metals. US GDP is expected to grow by 1.7 percent from earlier estimate of 2 percent for the year.
Dollar was lower against the Euro but that didn't help Copper and peers. The US currency ended at 1.3105 on 11 April as against 1.3066 a day before. Indian Rupee was stable at 54.52 against the Dollar on Thursday. INR is trading at 54.49 on Friday versus the Dollar.
China demand concerns are still in the news and this is making market participants skeptical. China is the biggest consumer of major metals in the world.
MCX Copper April expiry contract suffered from the highs of Rs 413.4 per kg and settled at Rs 412.5 per kg. Open interest in the contract increased to 30434 from 29597 contracts. Volumes in the metal was 94494 kgs against 83069 kgs.
Source by Commodity Insights
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